Anaconda Mining sells 3,266 ounces and generates $1.1M of EBITDA at the Point Rousse Project for Q3 fiscal 2016

TORONTO, April 13, 2016 /CNW/ – Anaconda Mining Inc. (“Anaconda” or the “Company”) – (TSX:ANX) is pleased to report its financial and operating results for the three and nine months ended February 29, 2016. All amounts are expressed in Canadian Dollars unless otherwise noted. During the third quarter of fiscal 2016, the Company sold 3,266 ounces of gold and generated $4,988,063 in revenue at an average sales price of $1,527(USD$1,099) per ounce. Cash cost per ounce sold at the Point Rousse Project for the three months ended February 29, 2016 was $1,188(USD$855). Earnings before interest, taxes, depreciation and amortization and other non-cash expenses (“EBITDA”) at the project level were $1,106,940. Net loss for the three months ended February 26, 2016 was $623,997. As at February 26, 2016, the Company had cash and cash equivalents of $889,527 and net working capital of $1,454,913.
President and CEO, Dustin Angelo, stated, “During the third quarter of fiscal 2016, the Company had some long term positive developments and some short term challenges. In February, we acquired, via option, the Viking project on the Northern Peninsula. It gives us established historical resources and a great potential to build another significantly sized project to feed the Pine Cove mill. We also processed over 15,000 tonnes of ore from Stog’er Tight. In total, the Pine Cove mill processed over 90,000 tonnes, but at an average head grade of just under 1.5 grams per tonne. Overall recovery and, to a lesser extent, throughput were impacted during the quarter by the failure of the regrind mill in December. Fortunately, as we moved into the fourth quarter, we were able to gain some experience with the SMD that has temporarily replaced the regrind mill and have seen recoveries return to normal as of March. The replacement component for the regrind mill is on site and currently being installed, after which, we expect to increase throughput. We continue to address the reduction in grade and have plans in place to improve head grade, which, based on the Pine Cove mine plan, is a short term issue.”
Highlights for the three and nine months ended February 29, 2016

• As at February 29, 2016, the Company had cash and cash equivalents of $889,527 and net working capital of $1,454,913.
• For the three months ended February 29, 2016, the Company sold 3,266 ounces of gold and generated $4,988,063 in revenue at an average sales price of $1,527(USD$1,099) per ounce.
• For the nine months ended February 29, 2016, the Company sold 11,827 ounces of gold and generated $17,571,939 in revenue at an average sales price of $1,486(USD$1,120) per ounce.
• Cash cost per ounce sold at the Point Rousse Project for the three and nine months ended February 29, 2016 was $1,188(USD$855) and $1,049(USD$791) per ounce respectively.
• All-in sustaining cash cost per ounce sold (“AISC”) (see Reconciliation of Non-GAAP Financial Measures), including corporate administration, capital expenditures and exploration costs for the three and nine months ended February 29, 2016 was $1,676(USD$1,206) and $1,493(USD$1,126) per ounce respectively.
• The mill processed 1,038 tonnes of ore per operating day for the three months ended February 29, 2016.
• The overall recovery in the mill for the three and nine months ended February 29, 2016 was 81% and 85% respectively.
• At the Point Rousse Project, EBITDA (see Reconciliation of Non-GAAP Financial Measures) for the three and nine months ended February 29, 2016 was $1,106,940 and $5,164,219 respectively.
• On a consolidated basis, EBITDA for the three and nine months ended February 29, 2016 was $367,888 and $3,339,943, respectively.
• Net loss for the three and nine months ended February 29, 2016 was $623,997 and $42,876 respectively.
• Purchase of property, mill and equipment for the nine months ended February 29, 2016 was $2,586,817. Key items included mill automation and equipment upgrades of $794,000, tailing expansion costs of $472,000, polishing pond construction of $306,000, construction of ore shed enclosure of $204,000, pit development costs of $748,000 at Pine Cove and Stog’er Tight.
• Production stripping assets for the nine months ended February 29, 2016 include additions of $1,238,245 and amortization of $37,258.
• Approximately $910,000 was spent at Point Rousse on exploration for the nine months ended February 29, 2016. The Company’s exploration initiatives included:
• Publishing a 43-101 Technical Report on the Point Rousse Project that included a mineral resource estimate at the Stog’er Tight and Pine Cove deposits;
• Completed a trenching program adjacent to the Stog’er Tight deposit designed to expose near surface mineralization;
• Initiated a drill program at Stog’er Tight to test the depth and strike extents of the Stog’er Tight deposit;
• Completed a geological mapping and trenching program at the Argyle zone;
• Completed a drilling program at the Pine Cove Pond area adjacent to the Pine Cove pit;
• On February 5, 2016 the Company completed the acquisition of Viking.

 
Operations overview
During the three months ended February 29, 2016, the gold sales volume of 3,266 ounces represented a 28% decrease over the same period in fiscal 2015, due to reduced grade and recovery. This was slightly offset by increased ore tonnes processed as well as an increased average gold sales price for the three months ended February 29, 2016. As a result of the lower sales volume, gross revenue for the three months ended February 29, 2016 of $4,988,063 was lower period over period by $1,278,691 or 20%.
The following table summarizes the key operating metrics for the three and nine months ended February 29, 2016 and February 28, 2015:

 
MILLING OPERATIONS
The Pine Cove mill operated for 88 days during the third quarter of fiscal 2016 at an availability rate of 98% compared to 92% in the third quarter of fiscal 2015. Grade for the three months ended February 29, 2016 was 1.48 g/t, a 20% decrease from the same period in fiscal 2015. Recovery also decreased from 83% to 81% period over period. For the Quarter, the mill processed 91,370 dry tonnes of ore, an increase of 5% compared to the third quarter of fiscal 2015. The mill’s run rate for the Quarter was 1,038 tonnes per operating day.
The Company processed 15,167 tonnes of ore from the Stog’er Tight deposit at an average grade of 1.66 g/t, producing 638 ounces of gold. For this initial tonnage, the Company did not experience any material differences in processing the Stog’er Tight ore compared to the Pine Cove ore.
Mill throughput per operating day and recovery were lower than normal during the third quarter due to mechanical issues with the regrind mill, which ensures the proper feed size of the ore prior to leaching. In the early part of the Quarter, throughput at the primary ball mill was reduced to get a finer grind than usual at that stage to compensate for the loss of the regrind mill. The Company, then, implemented a contingency plan where it replaced the regrind mill with a stirred media detritor (“SMD”). The commissioning of the SMD still required a slightly finer product from the primary ball mill (thus, hindering throughput) to manage the requisite product size from the SMD. Because of the inconsistent grind size going into the leaching circuit, recovery suffered during the quarter. By the end of the Quarter and the beginning of the fourth quarter, the Company began to optimize the new system and return to normal throughput and recovery levels. The Company expects the repairs to the regrind mill to be completed by the end of April, at which time it plans to switch from the SMD back to the original regrind mill.
MINING OPERATIONS
During the third quarter of fiscal 2016, the mining operations at Point Rousse included 62 days of production at the Pine Cove pit and 8 days of production at the Stog’er Tight deposit. Total production was 78,196 tonnes of ore and 584,345 tonnes of waste including 8,347 tonnes of ore and 19,513 tonnes of waste from Stog’er Tight. Mining production increased 47% in the third quarter of fiscal 2016 compared to the third quarter of fiscal 2015 to gain greater access to new areas of ore in the third phase of the Pine Cove pit. The Company has benefited from the use of the North Pit Waste Dump, which has reduced haul distance and per tonne cost of waste mined.
EXPLORATION
The Company is pursuing a strategy to leverage the existing infrastructure at Point Rousse by exploring and developing its mineral licenses and mining leases at the Point Rousse and Viking Projects in search of two general mineralization styles: Pine Cove-like, quartz-carbonate-pyrite hosted (2+ g/t) mineralization (baseload production sources) and higher grade (5+ g/t) quartz vein ± carbonate ± pyrite mineralization. The Company is working on expanding the current Pine Cove pit resource and bringing the Stog’er Tight and Thor deposits into production to extend the life of Point Rousse by expanding resources and reserves. Anaconda is also exploring and delineating potentially higher-grade deposits to blend with relatively lower grade Pine Cove, Stog’er Tight and Thor ore. With the high grade “layer” and a marginal increase to throughput, the Company’s goal is to increase annual production to approximately 30,000 ounces. The Company envisions creating an operating complex on the Ming’s Bight Peninsula and at Viking with multiple pits and trucking the ore or processed ore back to the Pine Cove mill.
Consistent with this strategy, in the quarter ended February 29, 2016, the Company has made the following advances in exploration:

• Published a 43-101 Technical Report outlining mineral resources at the Stog’er Tight and Pine Cove deposits and the Point Rousse mineral project;
• Completed a trenching program adjacent to the Stog’er Tight deposit designed to expose near surface mineralization;
• Initiated a drill program at Stog’er Tight to test the depth and strike extents of the Stog’er Tight deposit;
• Completed a geological mapping and trenching program at the Argyle zone;
• Completed a drilling program at the Pine Cove Pond area adjacent to the Pine Cove pit;
• Completed the acquisition of the Viking Project.

 
The Point Rousse Project
During the course of Anaconda’s exploration and development efforts at the Point Rousse Project, three primary gold trends have been identified within the Point Rousse area, with a cumulative prospective strike length of approximately 20 kilometres. The Company’s recent exploration work, combined with historical results, has brought more clarity, understanding and confidence to the Company’s geological interpretations and models. The Company believes it has the potential to discover and develop multiple deposits on the Ming’s Bight Peninsula. As a result, Anaconda believes that the Point Rousse Project area has the potential to host resources which could allow the Company to realize its goals of doubling production and continuing to mine for 10 years or more. Exploration and development efforts during the past year has focused entirely on implementing this strategy by focusing on extending the baseload production centered on Pine Cove and Stog’er Tight, as well as the discovery of a high-grade gold source in the project area.
Below is a brief overview of the gold trends on the Ming’s Bight Peninsula and Anaconda’s exploration efforts within them with specific reference to the Pine Cove and Stog’er Tight deposits and recent exploration work on these deposits.
The Scrape Trend
The Scrape Trend consists of a belt of highly prospective rocks approximately 7 kilometres long and approximately 1 to 2 kilometres wide. It begins southwest of the Pine Cove pit and continues eastward to the community of Ming’s Bight. The Scrape Trend includes the Pine Cove and Stog’er Tight deposits as well as the Romeo & Juliet, Anaroc and Animal Pond prospects and a new discovery referred to as the Argyle zone. These gold occurrences align with a fault delineated by a topographic lineament. The Scrape Trend hosts both baseload and high-grade styles of mineralization.
The Stog’er Tight and Pine Cove Resource Calculation
On October 22, 2015, the Company announced the results of a 43-101 compliant mineral resource estimate at the Stog’er Tight and Pine Cove deposits. The technical report was filed on SEDAR on December 8, 2015. These resource calculations represent an important step in the Company’s strategy to extend the life of the Point Rousse Project. With these new resource calculations, the Company is beginning to build a portfolio of ounces and demonstrate the potential of the Point Rousse Project.
The following tables summarize the mineral resources and reserves estimate for the Point Rousse Project:

 
The Stog’er Tight deposit trends east-southeasterly and is exposed over approximately 300 metres of strike.  Mineralized lenses vary from a few, to greater than 10 metres in thickness and to a depth of approximately 100 metres. The deposit is characterized by intense carbonate, albite, pyrite alteration of gabbroic rocks with gold closely associated with pyrite as at the Pine Cove deposit.
The Pine Cove deposit generally trends easterly and consists of a series of stacked mineralized zones across 350 metres that vary in strike length from 25 to 250 metres. Mineralization extends down dip for approximately 800 metres, though approximately 300 metres of the dip extent has been excluded from the current resource estimate since it is not currently feasible for open-pit mining because of its depth (between 175 and 300 metres from surface). The deposit is characterized by carbonate, quartz, pyrite, albite alteration with gold occurring with pyrite. The deposit has been continually mined since 2009 with a current production rate of approximately 16,000 ounces per year.
The Stog’er Tight Trenching Program
On December 17, 2015, the Company announced the results of its fall exploration program on the Stog’er Tight deposit. The program was focused on continuing to expand mineral resources along strike and adjacent to the Stog’er Tight deposit. The program included the excavation of 6 trenches and the collection of 219 one-metre channel samples in the East, West and Gabbro zones following up on historical mapping and trenching that indicated the presence of mineralization.
The primary goal of the program was to test the hypothesis that the East and West zones are continuous with the Stog’er Tight deposit at surface and that the East Gabbro zone is a separate zone of mineralization. The deposit has a known, near-surface strike length of approximately 300 metres. The results of the trenching and channel sampling program indicate that the East zone mineralization is contiguous with the Stog’er Tight deposit over a distance of 100 metres. The West zone was confirmed to contain mineralization over a strike length of at least 80 metres, but appears to be offset by approximately 25-40 metres along a fault south of the main trend of the deposit. Consequently, the strike length of mineralization exposed at surface at Stog’er Tight, including the deposit and the East and offset West zones, is now approximately 480 metres. Trenches across the East Gabbro zone intersected alteration, but did not produce appreciable gold grades.
The table below summarizes the composited grades associated with the trenching and channel sampling program.

The recognition of significant near-surface mineralization immediately along strike from the Stog’er Tight deposit is a positive sign that near-term growth of mineral resources is possible. The results of this program enable the Company to develop a focused diamond drill program targeting near-surface mineralization with the goal of expanding the mineral resource at Stog’er Tight.
On January 21, the Company announced the initiation of a diamond drill program at Stog’er Tight. The primary goal of the program is to determine if the surface mineralization, exposed during a recent trenching and channel sampling program, continues down-dip. If mineralization is intersected down-dip of that found at surface in the East and West zones, it may be possible to demonstrate geological continuity, and ultimately the extension of the Stog’er Tight deposit. A secondary goal of the program is to test the hypothesis that a third zone of mineralization, the Gabbro zone, is geologically contiguous with the West zone. If true, then the results will indicate that the Gabbro zone, the West zone and, potentially, the Stog’er Tight deposit are all part of a continuous mineralized system. All drill holes are planned with the ultimate goal of increasing mineral resources at Stog’er Tight.
The Argyle Zone Trenching Program
On January 8, 2015, the Company announced the discovery of the Argyle zone through a trenching program. The new discovery is located approximately 5 kilometres from the Pine Cove mill and consists of two areas of mineralization located approximately 200 metres apart. On November 16, 2015, the Company announced a geological mapping and trenching program to better understand the geological controls and surface distribution of mineralization. The mapping indicated that the Argyle zone is associated with a style of alteration very similar to the Stog’er Tight deposit – specifically the albitization and carbonatization of gabbroic rocks. Four trenches were designed to expose the potential along strike to the two zones of mineralization.
On January 21, 2016, the Company announced the results of its second trenching program at Argyle. The program consisted of the excavation of overburden along four trenches over 181 metres and channel sampling of 68 metres of the exposed bedrock. The goal of the program was to determine if the two previously exposed zones of mineralization are contiguous and demonstrate geological continuity along the Argyle prospect.  Three of the four trenches tested the eastern portion of the prospect where it was previously constrained by a single trench. A fourth trench tested the western limits of the prospect.
In the eastern area, trench AEtr15-18 returned 1.89 g/t Au over 10 metres. It is located 40 metres west of trench AEtr14-12, which contained 1.31 g/t Au over 11 metres, and 160 metres east of trench AEtr14-08, which contained 3.75 g/t Au over 16 metres (the latter two results were previously reported on January 8, 2015 and referred to as trenches A8 and A12). Trench AEtr15-19 intersected anomalous mineralization and a broad alteration zone consistent with alteration throughout the prospect area, but was not sampled across the entire trench due to poor ground conditions. Trench AEtr15-17 did not intersect alteration or mineralization. Trench AEtr15-20 exposed anomalous gold mineralization and the continuation of the alteration zone at the most westerly end of the Argyle prospect.
Geological mapping and interpretation of the analytical results indicate that the two previously exposed zones of mineralization are contiguous and that there is geological continuity throughout the Argyle prospect over a strike length of 300 metres. Gold grades and alteration character are similar in style and tenor to those observed at the Stog’er Tight deposit.
Drilling at the Pine Cove Deposit
On November 16, 2015 the Company announced it initiated a targeted diamond drilling program adjacent to the Pine Cove deposit focused on the southern margins of the mine in an area known as Pine Cove Pond. On January 25, 2016 the Company announced results of the drill program, which consisted of 1,156 metres of diamond drilling within 14 shallow holes. The program was focused on the southern margins of the Pine Cove deposit at a maximum depth of 75 metres in an area known as Pine Cove Pond, which is currently not part of the mine plan. Geological and geophysical evidence suggest that the Pine Cove Pond area may contain the easterly and westerly continuation of the southern portion of the Pine Cove deposit. The goal of the drill program was to understand the limits of known mineralization and establish Mineral Reserves in the Pine Cove Pond area to extend the mine life of the Pine Cove deposit.
Highlights of the drilling included:

• 2.11 g/t Au over 10.5 metres from 9.5 – 20.0 metres and 1.4 g/t Au over 9.0 metres from 24.0 – 33.0 metres in hole PC-15-256
• 2.68 g/t Au over 15.9 metres from 6.1 – 21.0 metres in hole PC15-257
• 3.16 g/t Au over 5.5 metres from 3.5 – 9.0 metres in hole PC15-252
• 1.14 g/t Au over 4.0 metres from 41.0 – 45.0 metres in hole PC15-259
• 1.47 g/t Au over 2.8 metres from 38.0 – 41.8 metres in hole PC15-253

 
The drill program was successful in extending known mineralization at the Pine Cove deposit 25 metres to the south, east and west of the current compliant resource. The results indicate that the southern portion of the deposit is open for expansion to the west, near surface, in the area of the hole PC15-257 intersection, and open for expansion east and west of the hole PC15-252 intersection. The Company plans follow up drilling to better outline resources in these areas and test the limits of the deposit. The Company will incorporate this information to determine if current and other potential resources can be included in the Pine Cove deposit mine plan.
The discovery of near-surface mineralization at these grades, that is open for expansion at the southern margins of the mine, is a positive sign that this part of the Pine Cove deposit could be expanded and potentially included in our mine plan.
The Goldenville Trend
The Goldenville Trend is an 8-kilometre long trend of highly prospective rocks centered on an iron stone unit referred to as the Goldenville Horizon. The Company believes the trend to be highly prospective because the trend is thought to contain ironstone hosted gold deposits including the Corkscrew deposit recently optioned from Seaside Realty (see press release of August 4, 2015).  Mineralization within the Goldenville Trend is a well-established geological model and the region is known to host these deposits. The Goldenville Trend has numerous gold prospects including four small, historical, hand-dug shafts, which were developed to mine visible gold. Anaconda is exploring the Goldenville Trend for high-grade deposits on the order of approximately 250,000 ounces of gold at 5 g/t or more (based on similar deposits and historical production within the region). If the Company is successful, it will have a longstanding high-grade feed source for the Pine Cove mill to layer on top of the baseload production from other sources like Pine Cove or Stog’er Tight.
No significant exploration field work was conducted during the three months ended February 29, 2016.
The Deer Cove Trend
The Deer Cove Trend is located in the northern part of the Ming’s Bight Peninsula and consists of a belt of prospective rocks approximately 3.5 kilometres in strike length. It is associated with the Deer Cove thrust fault and includes the Deer Cove deposit as well as various other showings and prospects.
Historical drill results suggest that the Deer Cove deposit could be a source of high-grade feed for the Pine Cove mill. Past development work includes a drill program on the Deer Cove deposit in 2014 to better outline the distribution of high-grade gold within the vein and to test the vein down-dip. The program consisted of 2,090 metres of diamond drilling in 20 holes (see press release dated February 27, 2015).  The results indicate that the deposit does continue at depth but that the high-grade portion of the deposit was not present to the depths tested.
No significant exploration field work was conducted during the three months ended February 29, 2015. The Company plans to update the deposit model with the most recent drill results and assess the deposits ability to be developed as a source of high-grade ore.
Future Plans
The goal at the Stog’er Tight deposit is to outline and begin development of at least five years of production.  Consistent with this goal, the Company conducted a stripping and channel sampling program to expose and characterize the deposit and the associated geology. This was followed up with a small drill program to test the extents of mineralization adjacent to the deposit. Plans were also developed to conduct metallurgical test work and to take a bulk sample for processing at the Pine Cove mill. Following a resource calculation the Company began work to expand on that resource by testing the limits of surface exposures of mineralization along strike from the deposit and also within adjacent areas. Based on the success of the most recent trenching, the Company has initiated a drill program to test the down dip extents of mineralization exposed at surface, outside of the current resource.
The Company plans to further evaluate the resource potential along the Goldenville trend and the Argyle zone. In the Goldenville trend the Company is exploring for a high-grade (5+ g/t) source of gold that can be processed with the baseload production. Plans are being made to make advances on this trend in fiscal 2017. Similarly, work is being planned to advance the Argyle zone.
The Viking Project
On February 10, 2016 the Company announced it acquired the Viking Project, which contains the Thor deposit and adjacent, contiguous prospective geology. Viking is located near the communities of Pollards Point and Sop’s Arm in White Bay, Newfoundland and Labrador, approximately 180 km by road (100 km by barge) from Point Rousse, and is accessible via a 2.5 km forest road from provincially maintained paved road networks. Viking encompass 6,225 hectares of highly prospective mineral lands.
The Thor deposit contains a historical mineral resource estimate as summarized below:

 
The Company plans to verify all available historical data, fully integrate the data into its database, and complete an assessment of the Thor deposit and exploration potential of the entire project area. It will refine the Thor deposit geological model to incorporate a new geologic interpretation and ultimately generate a new mineral resource estimate. Contemporaneous with data and resource model assessment, Anaconda will create a preliminary development plan to evaluate the project viability based on leveraging the Pine Cove mill.
The Company is planning a field program, based on the aforementioned work, for early summer of 2016 to advance the project. Additionally, metallurgical testing will be completed on mineralized intervals from the Thor deposit drill core to further assess compatibility with the Pine Cove mill flowsheet.
The historical mineral resource estimate referenced above is taken from a technical report filed on SEDAR titled “MINERAL RESOURCE ESTIMATE UPDATE FOR THE THOR TREND GOLD DEPOSIT, NORTHERN ABITIBI MINING CORP., White Bay Area, Newfoundland and Labrador, Canada, Latitude 49o 42′ N Longitude 57 o 00′ W.” prepared for Northern Abitibi Mining Corp. by Dr. Shane Ebert, P. Geo. and Gary Giroux, P. Eng. MASc., December 30, 2011. The historical mineral resource estimate of the Thor deposit is based on 109 diamond drill holes totaling 15,574m and 74 lines of surface channel samples cut from trenches using a diamond saw. Gold mineralization was constrained within a 3-dimensional geological solid built using Gemcom software. Gold assays within the mineralized solid were capped at 66.0 g/t Au while those outside the solid were capped at 4.0 g/t Au. Drill hole assay samples were composited into 2.5m intervals and a block model with 5m x 5m x 5m block size was created. Gold grades were interpolated into all blocks, by a combination of ordinary and indicator kriging. The Company considers the NI 43-101 report to be relevant and reliable given that the report was published recently and that no additional work of significance has been completed since the issuance of the historical mineral resource estimate.
In addition to the historical mineral resource estimate, other historical exploration efforts include: 146 holes of diamond drilling totaling 21,271m; excavation of 67 trenches and associated channel sampling; high-resolution airborne magnetic and electromagnetic geophysical surveying; ground induced polarization, magnetic and VLF surveys, rock and soil sampling and geological mapping.
Viking is the first step out from the Point Rousse Project and adds significant resources to the Company’s portfolio within striking distance of the Pine Cove mill. Our intent is to process any ore mined from this property at the Pine Cove mill so as to leverage our existing infrastructure. Beyond the historical indicated and inferred mineral resources at Viking, the Company is encouraged by the overall gold bearing potential of the project.
The information contained within the exploration section above has been reviewed and approved by Paul McNeill, P. Geo., VP Exploration with Anaconda Mining Inc., a “Qualified Person”, under National Instrument 43-101 Standard for Disclosure for Mineral Projects.
Reconciliation of Non-GAAP financial measures
The Company has included certain non-GAAP financial measures in this document. These measures are not defined under IFRS and should not be considered in isolation. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these measures is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with IFRS. These measures are not necessarily standard and therefore may not be comparable to other issuers.
Adjusted net earnings measure the performance of the Company, excluding certain impacts which the Company believes are not reflective of the Company’s underlying performance for the reporting period, such as the impact of foreign exchange gains and losses, impairment charges, and non-hedge derivative gains and losses. Although some of the items are recurring, the Company believes that they are not reflective of the underlying operating performance of its current business and are not necessarily indicative of future operating results.
The following table provides a reconciliation of adjusted net earnings for the three and nine months ended February 29, 2016 and February 28, 2015:

Cash cost per ounce sold is cost of sales before depreciation divided by gold ounces sold. All-in sustaining cash cost per ounce sold is cash cost, corporate administration, purchase of property, mill and equipment and purchase of exploration and evaluation assets divided by gold ounces sold.
The following table provides a reconciliation of cash cost per ounce sold and all-in sustaining cash cost per ounce sold for the three and nine months ended February 29, 2016 and February 28, 2015:

 
EBITDA is earnings before finance expense, foreign exchange loss (gain), unrealized gain on forward sales contract derivative, share-based compensation, income tax recovery and depreciation and depletion.
Point Rousse Project EBITDA is EBITDA before corporate administration, other revenues and expenses and write down of Chilean assets.
The following table provides a reconciliation of EBITDA for the three and nine months ended February 29, 2016 and February 28, 2015:

ABOUT ANACONDA
Headquartered in Toronto, Canada, Anaconda is a growth oriented, gold mining and exploration company with a producing project, called the Point Rousse Project, and approximately 6,300 hectares of exploration property on the Ming’s Bight Peninsula located in the Baie Verte Mining District in Newfoundland, Canada. Since 2012, Anaconda has increased its property control by ten-fold on the peninsula. It is currently exploring three primary, prospective gold trends, which have approximately 20 km of cumulative strike length and include three deposits and numerous prospects and showings, all within 8 kilometres of the Pine Cove mill. The Company’s plan is to discover and develop more resources within the project area and double annual production from its current rate of approximately 15,000 ounces to 30,000 ounces. Anaconda also controls approximately 6,225 hectares of property in White Bay, Newfoundland, approximately 180 km via road (100 km by barge) from the Pine Cove mill. The White Bay property contains the Thor-Trend gold deposit and other gold prospects and showings.
FORWARD-LOOKING STATEMENTS
This document contains or refers to forward-looking information. Such forward-looking information includes, among other things, statements regarding targets, estimates and/or assumptions in respect of future production, mine development costs, unit costs, capital costs, timing of commencement of operations and future economic, market and other conditions, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to: the final approval of the private placement by the Toronto Stock Exchange; the grade and recovery of ore which is mined varying from estimates; capital and operating costs varying significantly from estimates; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of the any project caused by unavailability of equipment, labour or supplies, climatic conditions or otherwise; termination or revision of any debt financing; failure to raise additional funds required to finance the completion of a project; and other factors. Additionally, forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “may,” “estimates,” “expects,” “indicates,” “targeting,” “potential” and similar expressions. These forward-looking statements, including statements regarding Anaconda’s beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no responsibility to update them or revise them to reflect new events or circumstances, except as required by law.
SOURCE Anaconda Mining Inc.

For further information: Anaconda Mining Inc., Dustin Angelo, President and CEO, (647) 260-1248, dangelo@anacondamining.com, www.AnacondaMining.com; Kingston Advisors, Investor Relations, (212) 796-5290, info@kingstonadvisors.com, www.KingstonAdvisors.com
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